Home How Human Trafficking Influence The Gold Industry

How Human Trafficking Influence The Gold Industry

People and the world vide media don’t like to talk nor to write about human trafficking, but it is still one of the biggest problems of our humanity these days. It is expected to get even worse once the next economic crisis hits in and the demand for gold and gold investment will start rising. Once the money is losing its value people are looking for safe haven investment like gold and real estates. As a consequence, the demand for gold and real estates starts rising and so is the demand for a cheap workforce. Both industries are closely connected and once the world economic crisis hits its bottom the human trafficking problems starts rising.

History and future of gold

Gold has been one of the rarest assets for thousands of years. This is nor a surprise when we look at the amount of gold available on the planet. If you would put together all the gold that had ever been mined, it would fill less than 4 Olympic-sized pools, forming a cube of around 20 meters square.

The first time when people realized, that gold is a material that can be used to make shining jewelry was in ancient Egypt. They also discovered that the substance was rare enough to be valuable. However, it wasn’t until 560BC that gold was being used as a currency fort he first time. Its value was agreed upon, so it could be used to pay for goods and services.

It was in 1792 when the US government established The Bimetallic Standard system by which all currency was required to be backed by either gold or silver. The purpose of such a system was being able to control inflation. Otherwise, money could be printed without providing any counter value in form of precious metals. Despite the benefits of such a system, the US government decided to abandon it in 1972 and the system was never re-established.

Why gold?

After you got acquainted with the brief history of gold, you could ask yourself: Why is gold still so relevant if it is no longer used as a back-up for currencies? The answer lies exactly in that fact alone. Because it is not connected to any of the world’s currencies it presents an independent commodity that can be used as a hedge against those very currencies. Furthermore, it is an asset that cannot disappear or get used up.

The first advantage of gold, when compared with currencies, is its preservation of value. The currencies of the world are known for their depreciation in value because of the inflation. To give you an example, if you bought some $100 worth of gold, after ten years, your gold would retain its value or become even more valuable, while the value of $100 would certainly drop. Also, because there is a finite amount of gold available it is not influenced by the rules of supply and demand in the same way as other assets such as oil. You can read more about how to buy gold online here

Investing in gold

If you want to invest in gold as a means of diversifying your portfolio, there are multiple ways of doing that. The most obvious one is buying gold jewelry or coins and therefore owning the physical gold itself. Another option is speculating on it as a commodity. This is a more abstract way of handling this asset, however, that option still attracts many people.

Looking into the future

Looking ahead, you should consider another thing when investing in gold. When there are times of economic uncertainty, the gold has usually held its value. Often the value of gold has even risen in such circumstances. You can check the current gold rates here

All in all, in today’s world where there is a lot of economic uncertainty, gold is one of the assets that could be a smart choice when deciding where to put your money.